NYSE and Nasdaq Withdraw Bitcoin and Ether ETF Options Rule Changes After SEC Request

The withdrawals are the latest in a flurry of activity surrounding spot BTC and ETH ETF options in the United States.

The New York Stock Exchange (NYSE) American and Nasdaq International Securities Exchange (ISE) have withdrawn three more requests to the Securities and Exchange Commission (SEC) for rule changes related to listing options on Bitcoin ( BTC ) and Ether ( ETH ) exchange-traded funds (ETFs), according to regulatory filings submitted after the market close on Aug. 14 and 15.

The filings follow statements in July from the SEC requesting more comments on the proposals. Nasdaq ISE withdrew requests to permit the listing and trading of options representing shares of the Bitcoin and Ether trusts, respectively. NYSE American similarly withdrew requests to “permit the listing and trading of options on the Bitwise Bitcoin ETF, the Grayscale Bitcoin Trust (BTC), and any trust that holds bitcoin.”

NYSE Arca withdrew another requested rule change intended to pave the way for listing crypto ETF options. The exchange was seeking to demonstrate “that the shares of each of the specified Bitcoin ETPs on which an exchange proposes to list options are ‘widely held and actively traded,’ as required by the exchanges’ rules,” according to Nasdaq comments in May.

In February, Grayscale, the largest crypto fund issuer with about $25 billion in assets under management (AUM), urged the SEC to “update its outdated historical patchwork approach and “approve the Exchanges’ applications to list options on spot Bitcoin exchange-traded products,” including the Grayscale Bitcoin Trust (GBTC).

According to analysts, the withdrawals could indicate positive momentum toward an agreement between the exchanges and the SEC to list crypto ETF options.

“There’s definitely some movement on Bitcoin ETF options,” Bloomberg Intelligence analyst James Seyffart said in a post on X. “The SEC probably gave some sort of feedback.”

Investors in the US are currently able to trade options on ETFs that track BTC performance using derivatives but not on ETFs that physically hold Bitcoin itself.

“If investing in options for shares of products holding derivatives of an asset is acceptable for investors, then so should be investing in options for shares of products that own the asset itself,” according to Grayscale's letter.

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